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Spirit Air surges most in four years after curbing growth plans
MIAMI's Spirit Airlines is pulling back on expansion that helped put it on the leading edge in rate war, sending the discount carrier's shares surging the most in four years, reports Bloomberg.
Spirit chief financial officer Ted Christie said the company will limit to a ceiling of 10 per cent in 2019, and delay the purchases of new Airbus SE aircraft.
The carrier is also studying whether to extend the leases of some planes in its fleet as it works to keep growth to the "low to mid double-digit" range, he said.
Spirit plans to expand by 22 per cent to 25 per cent in 2018.
Capacity growth - the ability to carry more passengers - is a critical part of how a low-fare airline like Spirit keeps expenses low, with costs spread across more seats.
Mr Christie said Spirit is confident that slowing expansion won't hurt its cost structure much. "Aircraft growth is not the only knob that the airline has available to it," he said.
Spirit chief financial officer Ted Christie said the company will limit to a ceiling of 10 per cent in 2019, and delay the purchases of new Airbus SE aircraft.
The carrier is also studying whether to extend the leases of some planes in its fleet as it works to keep growth to the "low to mid double-digit" range, he said.
Spirit plans to expand by 22 per cent to 25 per cent in 2018.
Capacity growth - the ability to carry more passengers - is a critical part of how a low-fare airline like Spirit keeps expenses low, with costs spread across more seats.
Mr Christie said Spirit is confident that slowing expansion won't hurt its cost structure much. "Aircraft growth is not the only knob that the airline has available to it," he said.
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